Thursday, July 13, 2006
In early June I posted an article on my homepage entitled, "Dow 11,000 & Global Panic?". In it, I overview a warning I've been giving ever since my "apocalyptic visions" in February of 1991. The U.S. stock market, which is an accurate barometer of mass mood, tends to top out around psychologically important thousand marks in the DJIA and then reverse course. What's interesting is that these reversals tend to coincide with negative historical shocks like 9/11, Iraq's 1990 invasion of Kuwait and the 1973 "Yom Kippur" Arab surprise attack against Israel.
Right now the DJIA appears poised to reverse from the psychologically important 11,000 mark (and then potentially the critical 10,000 mark). There is reason to suspect that this is the beginning of a "Grand Supercycle" crash.
This comes just as war is erupting between Israel and Hamas in the Gaza Strip and Hezbollah in southern Lebanon. There is concern that this could lead to a wider conflagration involving Syria and Iran meaning the fourth major Arab/Israeli War. Could what I foresaw in February of 1991 be coming true now? Let's deeply pray not....but world events are very ominous...